1) George Corporation has an estimated monthly sales of 12,000 units
for $80 per unit. Variable costs include manufacturing costs of $50 and
distribution costs of $20. Fixed costs are $60,000 per month.
Determine each of the following values.
a. Unit contribution margin
b. Monthly break-even unit sales volume 
Create a contribution margin-based income statement.
(Points : 30) 2.
7) Darling Manufacturing Inc. manufactures two products, A and B, from a
joint process. A single production costs $5,000 and results in 200
units of A and 800 units of B. To be ready for sale, both products must
be processed further, incurring seperable costs of $3 per unit for A and
$4 per unit for B. The market price for Product A is $15 and for
Product B is $10.
Required: Allocate joint production costs to each product using the net realizable value method.
(Points : 30) 
3.(TCO 6) Santa Inc. manufactures toys based on the following information.
Standard costs






Materials (4 ounces at $4)






Direct labor (1 hour per unit)






Variable overhead (based on direct labor hours)





Fixed overhead budget












Actual results and costs






Materials purchased




















Materials used in production







Finished product units







Raw material (ounces)







Direct labor hours







Direct labor cost







Variable overhead costs







Fixed overhead costs
















Compute the following variances (show calculations).





a. Materials usage variance





b. Labor rate variance





-c. Fixed overhead budget variance




(Points : 30)

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